THE crisis at Shell was laid bare yesterday as the oil giant ousted another director and shed light on events leading up to its reserves blunders.

THE crisis at Shell was laid bare yesterday as the oil giant ousted another director and shed light on events leading up to its reserves blunders.

Finance chief Judy Boynton became the third boardroom casualty of the furore that followed the shock 20% downgrade of its reserves earlier this year.

It has already cost the jobs of chairman Sir Philip Watts and head of exploration and production Walter van de Vijver.

Both men were made to carry the can for the crisis as an independent report commissioned by Shell severely censured the pair for appearing to know reserves did not meet market rules as far back as 2001.

Documents disclosed in the report reveal a series of clashes between the men as concerns mounted that oil and gas stocks had been aggressively overbooked during Sir Philip's time as head of exploration and production.

On one occasion Mr van de Vijver is reported to have e-mailed, "I am becoming sick and tired about lying about the extent of our reserves issues."

When staff sent a memo in December seeking full disclosure of its reserves woes, Mr van de Vijver is quoted in the report as calling for its destruction on the grounds that it was "absolute dynamite" and "not at all what I expected".

Mr van de Vijver issued a statement on April 13 defending his role, saying he raised the issue of possible over-booked reserves promptly with other senior managers. Both men were not immediately available for comment yesterday.

Ms Boynton, who will maintain an advisory role, has been cleared of any wrong-doing with Shell saying her demotion reflected the need for a "strong and robust CFO".

The company also stressed there was no evidence of any financial impropriety in relation to the reserves issue.

The report by lawyers Davis Polk & Wardell said the reserves issue was chiefly perceived by the two men as a "serious and immediate business question" rather than as a "regulatory and disclosure failing". Other managers had become aware of the debate, but the report said Mr van de Vijver and Sir Philip were "uniquely placed" to address the reserves issues.